Investing in MREITs always aimed at stable return beside of capital gain. Off late due to the changing of the landscape of economy. For example the rise of digital e-commerce somehow impacted the need for more shopping mall. Though the demand as F&B is still stable.
We also disposed office oriented MREITs as the supply continue to up pace demand. More importantly white collar jobs are on the rise becoming more mobile. We foresee the demand in office will continue to be competitive.
Overall properties are facing challenges in growth. I think the basic scenario is when the main street could not pick up the rental pressure. The yield will continue to lower while re-value the property.
Good malls are still doing well but yield is at around 5% and we believe the growth is limited.
We still keep some REITs which is specialized in certain segments. E.g. Healthcare, Hospitality, High-end commercial units and now low to mid income retail mall which we foresee the demand will be on the rise.